The Yen paradox

Posted Wednesday, May 11, 2016 by
Skerdian Meta • 1 min read

The Yen has declined nearly 20 cents since the start of this year. It reached as low as 105.50s last week but the talk of a possible intervention from the Bank of Japan sent it 400 pips higher this week. It topped out at the 100 moving average yesterday and today it is about 100 pips lower. The thing with intervention in USD/JPY is that it will happen if the pair is falling. So, now it means that there will be no intervention since the price has moved 400 pips higher since the lows last week. That might be the reason the Yen has gained 100 pips today. 

Will USD/JPY start declining again now that the option of intervention is over because the price went higher?

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